SERVICE: Reply to Income Tax Notices

Late filing of Income Tax Return

If the individual has not filed the return within the opening window of filing income tax return, then he shall get notice from the Income Tax Department.

Non-disclosure of income

If the tax has been deducted at source and individual has not shown the income while filing the income tax return, then the department can issue notice to him to show cause.

Tax credit mismatch

If the tax credit in Form 26AS and income tax return filed do not match, then the department can issue notice to him to show cause.

Non-payment of self-assessment tax

When the individual has filed the return even when the tax liability i.e., the tax was due to be paid, then the return filed will be considered to be a defective one and the department shall issue the notice.

Notice under Section 142(1)

This is a notification sent before the I-T Department starts investigation of the tax assessment. As a preliminary examination, the department orders that the tax paying individual produce details on salary, ventures, taxes paid, assets and liabilities. Taxpayer might be approached to deliver assessment and pay taxes, say for himself or anybody dependent on him, for instance a ward or a perished individual of whom he is the lawful beneficiary. If the Assessing Officer is happy with the records and data outfitted, at that point he may choose to not examine his case. Regardless of what one thinks, the details asked for are not applicable, one has to reply to the notice under Section 142(1), or face penalties and even prosecution for the same.

Notice Under Section 143(2):

This is a scrutiny notice that is usually served after a notice under Section 142(1) is sent out. You could receive this notice up to 6 months after the end of the assessment year. Receipt of this notice means that your case has been chosen for detailed investigation, and you need to furnish all relevant financial documents – income, investments, exemptions and deductions availed, losses, etc. To avoid penalties and prosecution, you need to reply to this notice as soon as possible. It may be better to consult a tax expert before replying to this notice.

Notice under Section 245:

You are served a notice under Section 245 if you have claimed refund on the tax paid, but there are previous dues n your name. Through this notice, the department lets you know the refund you have claimed, the pending demands from the previous years. If you do not respond to this notice, the dues and refunds will be adjusted against each other. If there is any discrepancy, you may need to file rectification or revision of return. If you have any rectification on the previous demands, you need to respond with the steps taken to correct the errors in the previous ITRs, and the reason why you should be paid the refund.

Notice under Section 139(9):

If there is an error in the ITR filed by you or any relevant income/investment proof has not been attached, the department will send you a notice under Section 139(9). You need to reply to this notice within 15 days or the return will be considered as not filed. If any rectification needs to be done, file a rectification request for the return or a revised return within the deadline. If the rectification or revision is done within the stipulated period, then the return will be considered as filed, but if you have missed the deadline for filing ITR for the given year then the return will be considered as not filed.